Lamb Weston (NYSE: LW) plans Munro plant closure with $50–60M charges

Rhea-AI Filing Summary

Lamb Weston Holdings, Inc. plans to close its manufacturing facility in Munro, Argentina and consolidate Latin American production at its new plant in Mar del Plata as part of efforts to improve operating efficiency. The company expects to record total pre-tax charges of approximately $50 million to $60 million, with substantially all of these costs recognized in the fiscal year ending May 31, 2026.

About half of these charges are expected to lead to future cash expenditures, largely in fiscal year 2026. The charges will primarily come from writing down long-lived assets and inventory, employee severance and other one-time termination benefits, costs tied to contracted raw potatoes that will not be used in production, and other related closure costs.

Positive

• None.

Negative

• Planned facility closure with sizable charges: Lamb Weston expects pre-tax charges of approximately $50–60 million from closing its Munro, Argentina plant, with about half requiring cash expenditures, largely in fiscal 2026.

Insights

Equity restructuring and operations analyst

Lamb Weston plans an Argentina plant closure with $50–60M in charges tied to consolidating production.

Lamb Weston is committing to close its Munro, Argentina manufacturing facility and consolidate Latin America production at its new Mar del Plata plant. This is framed as part of a broader effort to improve operating efficiency, suggesting a shift toward newer, likely more productive assets for the region.

The company expects total pre-tax charges of $50 million to $60 million, with substantially all recognized in the fiscal year ending May 31, 2026. Around half of these charges will require cash expenditures, also largely in fiscal 2026. Costs will include write-downs of long-lived assets and inventory, employee severance and other one-time termination benefits, and charges for contracted raw potatoes that will not be used, indicating both non-cash impairments and real cash outflows.

Management notes that actual results may differ due to operational challenges, timing and size of related charges, and broader political and economic conditions in the countries where it operates. Future disclosures in company reports may provide additional detail on realized charges and whether the consolidation supports its long-term value creation and Focus to Win strategy.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________

FORM 8-K

_________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 5, 2026

_________________________

Lamb Weston Holdings, Inc.

(Exact name of registrant as specified in its charter)

_________________________

Delaware			1-37830			61-1797411
(State or other jurisdiction of incorporation)			(Commission File Number)			(I.R.S. Employer Identification No.)
599 S. Rivershore Lane						83616
Eagle, Idaho						(Zip Code)
(Address of principal executive offices)
			(208) 938-1047
			(Registrant’s telephone number, including area code)
			N/A
			(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $1.00 par value			LW			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o

Item 2.05. Costs Associated With Exit or Disposal Activities

On January 5, 2026, Lamb Weston Holdings, Inc. (“we,” “our,” or the “Company”) committed to a plan to close our manufacturing facility in Munro, Argentina and consolidate production for the Latin America region to our new facility in Mar del Plata, Argentina. The contemplated closure is part of our efforts to improve operating efficiency.

In connection with the planned facility closure, we expect to incur total pre-tax charges of approximately $50 million to $60 million, substantially all of which are expected to be recognized in our fiscal year ending May 31, 2026. We estimate about half of these charges will result in future cash expenditures, substantially all of which are expected to be paid in fiscal year 2026. These cash and non-cash charges primarily relate to the write-down of long-lived assets and inventory, employee severance and other one-time termination benefits, costs associated with contracted raw potatoes that will not be used in production, and other related costs.

Forward Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws. Words such as “to,” “improve,” “expect,” “estimate,” “will,” and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include statements regarding our plans and strategies and anticipated benefits therefrom, including the estimated amounts and types of costs the Company expects to incur in connection with the planned facility closure. These forward-looking statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Readers of this report should understand that these statements are not guarantees of performance or results. Many factors could affect these forward-looking statements and our actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These risks and uncertainties include, among other things: operational challenges; our ability to successfully implement the facility closure, including achieving the benefits of those activities and possible changes in the size and timing of related charges; levels of labor and people-related expenses; our ability to successfully execute our long-term value creation strategies, including our Focus to Win strategy; the competitive environment and related conditions in the markets in which we operate; political and economic conditions in the countries in which we conduct business and other factors related to our international operations; actions of governments and regulatory factors affecting our businesses; and other risks described in our reports filed from time to time with the Securities and Exchange Commission. We caution readers not to place undue reliance on any forward-looking statements included in this report, which speak only as of the date of this report. We undertake no responsibility for updating these statements, except as required by law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			LAMB WESTON HOLDINGS, INC.
			By:			/s/ Eryk J. Spytek
						Name: Eryk J. Spytek
						Title: General Counsel and Chief Compliance Officer
Date: January 8, 2026

FAQ

What did Lamb Weston (LW) announce regarding its Argentina operations?

Lamb Weston committed to a plan to close its manufacturing facility in Munro, Argentina and consolidate production for the Latin America region at its new facility in Mar del Plata, Argentina as part of efforts to improve operating efficiency.

How much will Lamb Weston expect to spend on the Munro facility closure?

The company expects to incur total pre-tax charges of approximately $50 million to $60 million related to the planned Munro facility closure and consolidation of production.

When will Lamb Weston recognize the charges from the Argentina plant closure?

Lamb Weston expects that substantially all of the approximately $50 million to $60 million in pre-tax charges will be recognized in its fiscal year ending May 31, 2026.

How much of Lamb Weston’s Argentina closure charges will be cash expenditures?

The company estimates that about half of the expected $50 million to $60 million in pre-tax charges will result in future cash expenditures, with substantially all of those payments expected in fiscal year 2026.

What types of costs make up Lamb Weston’s $50–60 million in closure charges?

The charges primarily relate to write-downs of long-lived assets and inventory, employee severance and other one-time termination benefits, costs associated with contracted raw potatoes that will not be used in production, and other related closure costs.

Why is Lamb Weston closing the Munro, Argentina facility?

The contemplated closure of the Munro facility is described as part of Lamb Weston’s efforts to improve operating efficiency by consolidating Latin America production into its new Mar del Plata facility.